Sundaram Diversified Equity Fund

 

Sundaram Diversified Equity Fund

• Investment Style: Large Growth
• Investment Process: A well-defined process aimed at constructing a growth-oriented portfolio of high-conviction ideas
• Fund Manager: S. Krishnakumar
• Despite the presence of an experienced and capable manager at the helm, we'd like to see the investment team stabilise before we build more conviction on the fund.

Although the investment team is quite experienced, they recently underwent a restructuring process, with managers being assigned roles that reflect their areas of strength. While Rahul Baijal manages the AMC's large-cap strategies, Shiv Chanani now manages flexi-cap strategies and Krishnakumar manages the fund's small- and mid-cap mandates in addition to his role as the CIO of equities. We think that the restructuring will yield positive results over the long term. However, we would like to evaluate the impact of these changes over a longer term before we build more conviction on the team.

The fund's investment strategy has remained flexible, moving across market capitalisations. Its current exposure to mid-cap stocks in the portfolio ranges between 35% and 40%. However, this can change significantly based on its investment avenues. The fund is currently run with a slightly concentrated approach at a sector level with the manager deviating significantly from the index weightings.

This strategy has its own share of risks, and wrong sector calls by the fund manager can lead to substantial underperformance compared with its peers. While we have a positive view on the manager, we want to adapt a wait-and-watch approach until the team stabilises.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300